A PG&E transmission line during the Camp fire. Photo: Karl Mondon/Digital First Media/The Mercury News via Getty Images
Ratings agency S&P Global cut California utility company Pacific Gas and Electric (PG&E) to "junk" status Tuesday morning and also shifted its Pacific Power and Gas subsidiary to "B" from "BBB-," the lowest tier of investment-grade ratings, Reuters reports.
The big picture: S&P said it would keep PG&E under review for a further downgrade, saying the company faces increasing political and regulatory pressure amid growing claims stemming from its possible role in deadly wildfires across the state and a growing debt pile that looms large as the company's stock price has fallen.
Go deeper: The rise of UltraJunk bonds